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India-based Essel Propack Expands Danville, Virginia, Facility

12/18/2018
India-based Essel Propack, a global specialty packaging company serving the consumer goods and pharmaceutical sectors, will invest $31.2 million to expand its manufacturing facility in Danville, Virginia. The project is expected to create 45 new jobs.

Founded in 1982, the company produces a wide range of multilayer collapsible tubes and laminates used for packaging in personal care, food, pharmaceutical, and industrial applications. Essel Propack employs over 2,850 employees worldwide, including 252 at its first and only U.S. manufacturing operation in the City of Danville. The expansion will allow the company to double production at the Danville facility through the introduction of new Super High-Output tubes technology.

“Essel Propack America is committed to community outreach around the world as a part of our Community Involvement Strategy, which focuses on contributing to and supporting the communities where we work,” noted Essel Propack Head of Finance Anindya Bagchi.

“Founded in 2002, our 200,000-square-foot U.S. manufacturing facility is located in the heart of Southern Virginia, and we have benefited over the years from extensive partnerships with the local chamber of commerce, economic development partners, and the public-school systems. This region offers many advantages, including low operating costs and a talented workforce that has allowed us to grow and innovate at our facility. In our role as a dedicated corporate partner, we look forward to many more years of collaboration with both the City of Danville and the Commonwealth,” Bagchi said.

“Essel Propack’s decision to introduce new technology at its facility in the City of Danville will ensure that Southern Virginia and the Commonwealth remain at the forefront of advancements in the manufacturing industry,” said Secretary of Commerce and Trade Brian Ball. “Industry-led innovation continues to be a crucial component of our efforts to maintain a thriving, 21st century economy, and we thank Essel Propack for its significant contribution.”

As an incentive, Virginia Economic Development Partnership worked with the City of Danville and Southern Virginia Regional Alliance to secure the investment opportunity for Virginia. Governor Northam approved a $150,000 grant from the Commonwealth’s Opportunity Fund to assist the City of Danville with the project. The Governor also approved a $300,000 performance-based grant from the Virginia Investment Performance (VIP) Program, an incentive that encourages capital investment by existing Virginia companies. The Virginia Tobacco Region Revitalization Commission approved $330,000 in Tobacco Region Opportunity Funds for the project. Essel Propack is eligible to receive state benefits from the Virginia Enterprise Zone Program, administered by the Virginia Department of Housing and Community Development.

“The City of Danville is a hub for applied research and technological innovation in the advanced manufacturing industry, and Essel Propack has been an important part of this ecosystem since its arrival in 2002,” said Governor Ralph Northam. “With access to the region’s pipeline of skilled talent and low operating costs, Essel Propack has flourished in Southern Virginia. We are proud to have a company of this caliber on our corporate roster, and look forward to the Essel Propack’s continued success in the Commonwealth.”

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